Central Bank of Nigeria (CBN) Governor Olayemi Cardoso forecasts mobile money and digital lending as key drivers of Nigeria’s service sector growth in 2024.
Speaking at the Nigerian Economic Summit Group’s 2024 Macroeconomic Outlook Report launch, Cardoso emphasized the service sector’s role in the economy, predicting a 3.76% growth rate for the year, underpinned by fintech innovation and government-backed financial inclusion initiatives.
The services sector, according to Cardoso, will continue to dominate the economy, with mobile money adoption, government partnerships, and expanded digital lending offerings leading the charge.
This growth strategy is part of a broader economic vision that also highlights industry, agriculture, mining, and utilities as sectors benefiting from market-based reforms and SME-driven expansion.
Cardoso’s optimism for fintech’s contribution to Nigeria’s goal of becoming a $1 trillion economy was reiterated, emphasizing its importance alongside other sectors like agri-processing and manufacturing in attracting significant investments.
However, he also signaled a tougher stance on regulatory compliance within the fintech space, citing recent concerns over technology’s use in financial services and the adherence to licensing frameworks.
The CBN’s commitment to a more cashless economy is evidenced by the significant growth in mobile money, with GSMA reporting a rise in mobile money transactions and account ownership in Nigeria and Sub-Saharan Africa.
The number of mobile money agents in Nigeria surged by 41% in 2022, reflecting a liberalized regulatory regime’s impact.
Moreover, the rise of digital lending in response to economic challenges has seen an increase in licensed digital lenders, with 211 firms approved to operate, showcasing the evolving financial landscape and fintech’s pivotal role in driving Nigeria’s economic growth and financial inclusion in 2024.
